The report, titled “Commercial Real Estate: Potential is Built, Opportunity is Now,” highlights that India’s commercial real estate (CRE) sector stands at a transformative juncture — where high occupancy, policy reforms, and diversification across asset classes are unlocking massive institutional opportunities.

India’s CRE Sector: From Promise to Performance

India’s CRE market is maturing into a globally competitive investment destination, driven by:

• Expansion of office, retail, and warehousing sectors
• Increasing participation of private equity and REIT investors
• Favourable policy reforms and a surge in foreign capital inflows

India’s total office market stock has surpassed one billion sq. ft. in 2025, making it the fourth largest globally, with a total market value estimated at ₹16.4 trillion. The office sector has maintained a long-term compound annual growth rate (CAGR) of 8.6%, reflecting resilience and sustained investor appetite.

REIT Market Outlook: ₹19.7 Trillion by 2030

• India currently has five listed REITs, covering around 177 million sq. ft. of office and retail space worth approximately ₹2.3 trillion.
• The market is supported by over 290,000 unitholders, with an average annual dividend yield of 5.5%, positioning REITs as reliable income-generating investments.
• By 2030, the total REIT-able market — including office, retail, and warehousing sectors — is projected to touch ₹19.7 trillion, underscoring the expanding institutional depth of Indian real estate.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said:
“India’s CRE transformation is led by businesses that are more global, technology-driven, and experience-focused. As India heads toward a USD 7 trillion economy, commercial real estate will play a critical role in powering productivity and attracting global investment.”

Office REITs: The Growth Engine

• Only 15.3% of total office stock across India’s top eight cities — including Mumbai, NCR, Bengaluru, and Hyderabad — is currently under REITs.
• The value of REIT-able office assets is expected to double from ₹8.2 trillion in 2025 to ₹16 trillion by 2030.
• The Global Capability Centres (GCCs) segment and sustainable workspace demand are the key occupier drivers for this growth phase.

Retail REITs: Organized Retail Gains Institutional Traction

India’s retail sector is witnessing a revival backed by strong consumer spending:

• Organized retail consumption is estimated at ₹8.8 trillion in FY2025, led by:
  • Shopping Centres – ₹4.9 trillion
  • High Streets – ₹3.8 trillion
  • Airport Retail – ₹0.1 trillion
• Retail REIT-able assets are expected to rise from ₹1.5 trillion in 2025 to ₹2.4 trillion in 2030.
• The shift toward experience-driven, lifestyle-based retail formats is attracting institutional capital, particularly as malls and mixed-use spaces evolve into lifestyle hubs.

Private equity inflows into retail real estate have touched USD 500 million year-to-date (2025), signalling renewed investor confidence.

Warehousing and Industrial REITs: Logistics Drives Next-Gen Growth

• Warehousing and logistics leasing reached 32.1 million sq. ft. in H1 2025, driven by e-commerce and 3PL expansion.
• India’s top eight warehousing markets now hold 220.9 million sq. ft. of Grade A stock.
• The REIT/InvIT potential value of warehousing assets could grow from ₹0.7 trillion in 2025 to ₹1.3 trillion by 2030.

Viral Desai, Senior Executive Director, Knight Frank India, noted:
“With office stock crossing 1 bn sq. ft. and retail consumption nearing ₹9 trillion, we are witnessing a maturing CRE cycle driven by sustainability, foreign capital, and investor confidence.”

Data Centres: India’s Fastest-Growing CRE Asset Class

• India’s total data centre capacity has now exceeded 10 GW, including 1.4 GW operational and 8.8 GW in pipeline.
• Growth is fuelled by AI adoption, 5G rollout, cloud infrastructure, and data localisation requirements.
• The report calls for a national policy framework to address power reliability, renewable sourcing, and workforce development to sustain growth.

Industry Perspective: CRE as the Economic Backbone

Neel Raheja, Chair, CII National Committee on Real Estate & Housing, and Group President, K Raheja Corp, said:
“India’s commercial real estate is no longer a promise — it’s performance. As the sector matures, it will anchor investment flows, employment, and urban transformation across the country.”

Conclusion

India’s commercial real estate sector stands at an inflection point — evolving from a growth story into one of enduring institutional depth, global relevance, and sustainability.
With REITs scaling up, retail formalizing, and digital infrastructure expanding, the sector is set to become a core driver of India’s $7 trillion economic ambition by the end of the decade.

Also Read: Data Benchmarking Institutions Launched to Empower Indian REIT Investors

The post India’s REIT Market to Touch ₹19.7 Trillion by 2030, Driven by Office, Retail and Warehousing Growth appeared first on Square Feat India.

Bengaluru & Hyderabad lead the pack; diversification into retail, warehouses, and even data centres on the horizon

If you have ever walked into a modern glass office building in Bengaluru, Hyderabad, or Mumbai, chances are that the space might be owned by a Real Estate Investment Trust (REIT). Now, according to global property consultant Colliers India, REITs are set to play an even bigger role in the coming years.

Colliers’ latest report says that REIT penetration in India’s office market can rise from the current 16% to 25–30% by 2030. Put simply, nearly one in every three premium offices in India could be owned by REITs within the next five years.

What are REITs and why should you care?

Think of a REIT as a stock market-listed basket of properties. Instead of buying an entire office floor or mall, retail investors like you and me can invest small amounts in a REIT, and in return, earn steady rental income. For developers, it’s a way to unlock cash from buildings they already own, and for investors, it’s a chance to earn from real estate without actually buying property.

India’s big opportunity: 500 million sq. ft. of REIT-worthy offices

At present, India has about 133 million sq. ft. of office space listed under four REITs, mostly in top cities. But Colliers estimates that another 371 million sq. ft. of Grade A offices can potentially be brought under future REITs — that’s nearly half of all premium offices in the country.

Bengaluru leads the pack with 24% of this additional stock, followed by Hyderabad at 19%. A large chunk — nearly 60% of REITable offices — is concentrated in Secondary Business Districts (SBDs) of India’s top seven cities.

Beyond offices: retail malls, warehouses, and even hotels

REITs in India are no longer just about offices. The existing portfolios already include 5 million sq. ft. of retail malls and 11 million sq. ft. of warehouses and logistics parks. Experts believe that in the future, REITs could also include hotels, student housing, senior living, rental homes, and even data centres.

This is exactly how global REIT markets like Singapore, Japan, and the US grew into multi-billion-dollar sectors.

High demand, strong tenants, steady income

So far, India’s REIT-backed offices have maintained occupancy levels of over 86%, despite global headwinds. Tenants include a mix of tech firms, banks & financial services, consulting, and flexible workspaces. These long-term leases ensure regular income for REIT investors.

“Office REITs in India are at an early growth stage, but with rising demand from global companies and steady rental growth, their share can reach 25–30% by 2030,” said Badal Yagnik, CEO, Colliers India.

The bottom line

For the average Indian investor, this means more opportunities to invest in property without buying it outright. With better regulations, sustainability push (86% of office REITs are already green-certified), and diversification across sectors, REITs are expected to be a key part of India’s financial markets by the end of this decade.

Also Read: Women Homebuyers on the Rise: 1.29 Lakh Residential Transactions Recorded in 2024, Growing 14% Annually

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